COBURG, Ore., Nov. 9 /PRNewswire-FirstCall/ -- Monaco Coach Corporation , one of the leading manufacturers of motorized and towable recreational vehicle products, announced today that it has reached a definitive agreement to acquire the Indiana-based R-Vision companies and affiliates in an all-cash transaction of approximately $60 million. R-Vision is a leading manufacturer of travel trailers, including lightweight and hybrid trailers, together with fifth-wheels, Class A motorhomes and Class C motorhomes. Its Bison and Roadmaster affiliates make utility trailers and specialty trailers for transporting automobiles, race cars, motorcycles and horses. R-Vision is the industry's sixth largest towables manufacturer.

The acquisition is currently expected to add $200 million to $220 million in sales for Monaco Coach and is expected to add earnings of 13 to 16 cents per share in fiscal 2006. The acquisition will position Monaco as the fifth largest manufacturer of both travel trailers and fifth-wheels. Monaco is presently the largest builder of Class A diesel motorhomes and the fifth largest Class A gasoline motorhome manufacturer.

"R-Vision has an innovative and efficient management team responsible for their consistent growth and profitability over the last five years," said Kay Toolson, Chairman and Chief Executive Officer of Monaco Coach. "There is virtually no overlap in the products offered by our two companies. R-Vision is the industry leader in the lightweight towable segment, with valuable brands based on the successful Trail-Lite trade name. The R-Vision group of companies has tremendous potential for growth in the markets they compete in today."

"There are multiple opportunities for purchasing and other synergies between the two companies," said John Nepute, Monaco Coach President. "The combined companies will now have an annual production rate of over 20,000 recreational vehicles."

"Over the past five years, R-Vision towables sales revenues have grown at a compound annual rate of approximately 13% and their Specialty Products Division, which manufactures horse trailers under the Bison brand and specialty trailers under the Roadmaster brand, has grown sales revenue at a compound annual rate of 44%," Nepute noted.

"We currently expect the acquisition to be accretive to our earnings in the fourth quarter of 2005," said Marty Daley, Vice President and Chief Financial Officer. "Our plan is to operate R-Vision as a separate entity which will allow the R-Vision group of companies to continue to operate their companies with a low overhead structure, while taking advantage of other corporate synergies."

Closing of the transaction is expected to occur later this month and is subject to customary closing conditions. Founded by industry veteran Bill Warrick in 1995, the R-Vision Group is based in Warsaw, Indiana. In 1997, the current management team of Denny Bailey and Bill DeVos joined the company. After the acquisition by Monaco Coach, Bailey will continue as President of R-Vision and Craig Swisher will continue as President of the Specialty Products Group. Both Mr. Bailey and Mr. Swisher have retained their entire management teams which will continue to run the respective companies. R-Vision sells its recreational vehicles and specialty trailers through a network of over 450 independent dealers in the U.S. and Canada. The products are manufactured in R-Vision's production facilities, consisting of 420,000 square feet of manufacturing floor space on 58 acres in Warsaw, Indiana. The specialty trailers are manufactured in Milford, and Goshen, Indiana. The R-Vision companies currently employ approximately 900 people.

Headquartered in Coburg, Oregon, with additional manufacturing facilities in Indiana, Monaco Coach Corporation employs more than 5,100 people and is one of the nation's leading manufacturers of recreational vehicles. Monaco Coach offers entry-level priced towable RVs up to custom made luxury recreational vehicle models under the Monaco, Holiday Rambler, Safari, Beaver and McKenzie brand names. For additional information about Monaco Coach Corporation, please visit http://www.monaco-online.com/.

Forward Looking Statements

The statements above regarding the sales, market position and earnings contribution expectations for the R-Vision Group for 2006, the potential for growth of the R-Vision Group, the expected combined unit volume, the opportunities for purchasing and other synergies, the immediately accretive nature of the transaction, the ability of R-Vision group to continue to operate with low overhead costs, the anticipated closing schedule for the acquisition and the post-closing management of the R-Vision Group, are forward-looking statements based on current information and expectations and involve a number of risks and uncertainties. A number of factors could cause actual results to differ materially from these statements, including the risk that the acquisition will not be consummated in a timely manner or at all, risks relating to integrating the R-Vision Group with the Company's operations, the inability to obtain expected synergies for the combined companies, the risk that future results of R-Vision Group are less than its historical results, changes in market conditions, weaker than anticipated demand for R-Vision's products, continuing relationships with existing dealers, competitors new product introductions and pricing, warranty expenses higher than projected, the effects of the price and supply of fuel, increases in material costs or availability of supplies, assimilation of company's information technology and administrative systems, and other risk factors relating to the Company's business detailed in the Company's Securities and Exchange Commission reports ("SEC Reports"). Please refer to the Company's SEC Reports, including but not limited to the most recent Form 10-Q, the annual report on Form 10-K for 2004, and the 2004 Annual Report to Shareholders for additional factors. These filings can be accessed over the Internet at http://www.sec.gov/.

FOR MORE INFORMATION CONTACT: Craig Wanichek - Investor Relations Monaco Coach Corporation (541) 681-8029 http://www.monaco-online.com/

Website: http://www.monaco-online.com/